This structure is called a 'one-step' or 'single close' loan. We provide both the construction financing and permanent financing in a single loan. During the construction phase, periodic draw payments are made to the builder based upon work completed. Monthly interest payments are billed to the borrower. At completion, the loan modifies to a permanent loan. The construction interest rate and permanent loan rate can be locked to protect the buyer from increases in interest rates during construction.

The single-step structure has the following advantages:
• A single lender is used throughout the process.
• There may be local and federal tax advantages of a single step loan.
• Closing costs duplication is minimized.
• The interest rate during construction and the permanent loan rate can be locked.

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